Aditya Birla Fashion DEMERGER Surprise: Q2 LOSS WIDENS! Axis Direct Rates HOLD – See Rs 90 Target & What It Means For YOU!

Aditya Birla Fashion & Retail completed a demerger in May 2025, creating Aditya Birla Lifestyle Brands, which listed shares on June 23, 2025. The demerger ratio was 1:1.

Following this, the company reported a consolidated net loss of Rs 295.09 crore for Q2, widening from Rs 174.99 crore a year ago, despite revenue growth to Rs 1,981.66 crore. EBITDA stood at Rs 69 crore, with margins falling 99 bps to 3.5% due to higher marketing spends.

Axis Direct maintained a 'HOLD' rating, citing sustained growth, strategic investments, and brand modernisation. They noted the focus on profitability and digital transformation as positive for long-term growth, but cautioned that results will take time and near-term execution is key. The brokerage set a target price of Rs 90, implying a potential 14% upside from its Rs 80 closing price.

Impact This news is important for Indian investors in the retail sector. The demerger and financial results, alongside analyst views, directly impact investor sentiment and potential stock price movements for Aditya Birla Fashion & Retail. The company's execution of its strategies will be crucial.

Difficult Terms * Demerger: Dividing a company into separate entities. * Consolidated Net Loss: Total loss of a parent company and its subsidiaries. * Revenue: Total income from sales or services. * EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (measures operating performance). * EBITDA Margins: EBITDA as a percentage of revenue. * bps (Basis Points): 1/100th of a percentage point. * YoY: Year-on-Year comparison. * Record Date: Date to determine eligibility for corporate actions. * HOLD Rating: Recommendation to keep current stock holdings. * Target Price: Analyst's predicted future stock price.